Abatti v. Eldridge

Opinion

WIENER, J.

The question in this appeal is whether the court properly exercised its discretion in resolving competing creditors’ claims to an insufficient common fund. Or, phrased differently, if the court can’t increase the size of the pie, how should it cut the slices? We hold the court was correct in denying defendants’ motion to approve a settlement with plaintiffs where the settlement was an attempt to finesse the lien of a judgment creditor imposed pursuant to Code of Civil Procedure section 688.1. In other words, where the pie is ample, equity requires that each creditor be given…